08.04.2013 - New Zealand house prices are overvalued - but they will keep rising, according to the BNZ

New Zealand house prices are definitely overvalued, but that won't stop them continuing to rise, according to the BNZ. The BNZ's head of research Stephen Toplis says in a research paper titled "The Housing Dilemma" that it is "widely accepted" that our house prices are overvalued. He says a "significant correction" in house prices is warranted, but won't happen till current shortages of housing are addressed.
"Often cited is the inability of prospective new home owners to fund the purchase of a new dwelling; elevated house prices relative to wages and rents; the cost of housing relative to the other countries; and the amount of debt householders have built up relative to the value of their assets," he says...............................................Full Article: Source